Correlation Between Thrivent High and Franklin High
Can any of the company-specific risk be diversified away by investing in both Thrivent High and Franklin High at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Thrivent High and Franklin High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thrivent High Income and Franklin High Yield, you can compare the effects of market volatilities on Thrivent High and Franklin High and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Thrivent High with a short position of Franklin High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thrivent High and Franklin High.
Diversification Opportunities for Thrivent High and Franklin High
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Thrivent and Franklin is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Thrivent High Income and Franklin High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin High Yield and Thrivent High is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Thrivent High Income are associated (or correlated) with Franklin High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin High Yield has no effect on the direction of Thrivent High i.e., Thrivent High and Franklin High go up and down completely randomly.
Pair Corralation between Thrivent High and Franklin High
Assuming the 90 days horizon Thrivent High Income is expected to generate 0.97 times more return on investment than Franklin High. However, Thrivent High Income is 1.03 times less risky than Franklin High. It trades about 0.09 of its potential returns per unit of risk. Franklin High Yield is currently generating about 0.08 per unit of risk. If you would invest 860.00 in Thrivent High Income on September 3, 2024 and sell it today you would earn a total of 121.00 from holding Thrivent High Income or generate 14.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thrivent High Income vs. Franklin High Yield
Performance |
| Timeline |
| Thrivent High Income |
| Franklin High Yield |
Thrivent High and Franklin High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thrivent High and Franklin High
The main advantage of trading using opposite Thrivent High and Franklin High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thrivent High position performs unexpectedly, Franklin High can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Franklin High will offset losses from the drop in Franklin High's long position.| Thrivent High vs. Blackrock Science Technology | Thrivent High vs. Technology Ultrasector Profund | Thrivent High vs. Towpath Technology | Thrivent High vs. Allianzgi Technology Fund |
| Franklin High vs. Nuveen High Yield | Franklin High vs. Nuveen High Yield | Franklin High vs. Nuveen High Yield | Franklin High vs. Nuveen High Yield |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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